​Choosing your business structure is an important decision and Taxwise Partners can consult with you and suggest the best structure for your business. There are four main business structures commonly used by small businesses in Australia. They are:

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• Sole trader: an individual operating as the sole person legally responsible for all aspects of the business. Like other structures, as a sole trader you can employ people to help you run your business. The structure is inexpensive to set up because there are few legal and tax formalities.

• Partnership: an association of people or entities running a business together, but not as a company. A partnership is relatively inexpensive to set up and operate.

• Company: a legal entity separate from its shareholders. It is a complex business structure, with set-up and administrative costs that are usually higher than for other business structures.

• Trust: an entity that holds property or income for the benefit of others. Trusts require a formal trust deed that outlines how the trust operates, require the trustee to undertake formal yearly administrative tasks and if you operate your business as a trust, the trustee is legally responsible for its operations. A trustee of a trust can be a company, providing some asset protection.

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Companies and Trusts are more complicated business structures, but they have their advantages and Taxwise Partners can discuss these with you. It is important to note that you can change your business structure throughout the life of your business.